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Business, 09.03.2021 04:20 Hi1234t6

You are given the following information about equipment that is required for your business. Assume that the equipment will be replaced as it wears out and that straight-line depreciation to zero is used for each. The required return is 15% and ignore taxes. Machine A has an initial cost of $200,000, an operating cost per year of $15,000, and an expected life of 8 years. Machine B has an initial cost of $300,000, an operating cost per year of $17,500, and an expected life of 10 years. How does the equivalent annual cost of Machine A compare to that of Machine B

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